Legislature to decide rules for operation of slot machines

The slots battle on Wednesday quickly moved from the polling booths of South Florida to the state Capitol as both sides prepare for the next phase -- regulation and taxation.

It is now within the realm of the Legislature to decide how much money Broward's four pari-mutuels can make off the Las Vegas-style machines that could be up and running by the end of this year. Among the key issues to be settled are the days and hours slots will be allowed to operate at Gulfstream Park, Dania Jai-Alai, Hollywood Greyhound and Pompano Harness Track, and how high a tax the state will slap on the machines to benefit public schools across the state.

Buoyed by their victory in Broward, proponents lobbied legislators for regulations that will make the Broward gambling venues competitive with the Indian casinos and day cruise ships that have been siphoning off customers for years.

"I just don't see a widespread hostility against gambling," said state Sen. Steve Geller, D-Hallandale Beach, president of the National Association of Legislators from Gambling States. "I don't believe the Senate will want to limit the days of operation or the number of machines, just the hours."

Opponents, however, were emboldened by Tuesday's split vote, claiming the slots defeat in Miami-Dade could give impetus to tougher regulations or even a statewide move to undo expanded gambling.

"The repeal issue has a whole new set of jets now," said state Rep. Randy Johnson, R-Celebration, leader of Orlando-based No Casinos and a major opponent of the Las Vegas-style slots. "This sends a strong message to a Legislature now trying to grapple with the people's will. They've looked at the issue, and they're substantially divided."

Gov. Jeb Bush pledged to meet with members of the House, Senate and pari-mutuel industry to find out whether there is any common ground that can be reached early so that the issue doesn't become a major logjam during the legislative session.

"We still have a duty to implement this for Broward County, and that's what we intend to do," said Bush, who joined the anti-slots campaign in its final days and is credited with helping to kill the gambling drive in his home county.

But the governor, who agreed a push for repeal is a possibility, also made it clear he wants tough regulations put on the industry and wants a tax rate far higher than the 30 percent the pari-mutuels have already volunteered to pay.

Both House Speaker Allan Bense and Senate President Tom Lee predicted a different atmosphere in the Legislature, as Tuesday's split vote will likely result in fewer advocates of the gaming legislation.

"I feel better about the fact there won't be a giant sign over Florida saying, `Florida equals gambling,'" said Bense, R-Panama City.

"I think the fact that it failed in Miami-Dade probably sends a message to this Legislature that Florida is less pro-gaming than the proponents of this measure were suggesting," added Lee, R-Brandon. "I think there will be increased momentum for stronger regulation of this industry due to the fact it has had a lukewarm reception in southeast Florida."

As both sides of the battle worked to put their own political spin on the outcome of Tuesday's vote, the coalition of Broward and Miami-Dade pari-mutuels that prompted the debate vowed there will be another attempt to win over Miami-Dade voters, although they must wait two years.

Dan Adkins, vice president of Hollywood Greyhound and leader of the referendum push, spent Wednesday lobbying legislators throughout the Capitol. He predicted that once slots are running in Broward and Miami-Dade voters see the evils they feared did not come true, they will be more likely to approve the machines.

"The best thing now is if the Legislature can give us a reasonable business plan. I look at this as ... you crawl before you walk," he said.

Legislation to implement slots will be developed by the House Business Regulation and the Senate Regulated Industries committees. Both committees have strong representation from Broward and Miami-Dade counties.

A House bill could surface as early as next week, while a Senate bill is expected within two to three weeks.

"We have an obligation to try to create the legislation to meet the spirit of the constitutional amendment that passed in November," said Sen. Dennis Jones, R-Treasure Island, who chairs the Senate Regulated Industries Committee. "Then Miami-Dade and the rest of the state will be watching Broward to see if it can capture some of those who leave the state to gamble elsewhere and, will it bring in more revenue?"

Jones said 24-hour operation of the slot machines is "not even a reality" but said the taxation rate will be something "that is good for the state but that doesn't stymie venture capital," likely starting out between 30 percent and 37 percent.

Rep. Ron Greenstein, D-Coconut Creek, the leading proponent of slots in the House, said he'll start out asking for a 24-hour-a-day, seven-day-a-week operation.

"I'm going to push them to go all the way and then see where the debate goes," said Greenstein, who sits on the House Business Regulation Committee.

But it's likely that any slots bill will face tougher scrutiny in the more conservative House, where one of its key leaders, House Speaker-designate Marco Rubio, joined with Bush to campaign against the slots referendum.

State Rep. Frank Attkisson, R-Kissimmee, the committee chairman, said his focus will be on trying to develop the best state policy, but he also suggested the voters may need to readdress the issue.

"It was sold to the voters saying, if you would like two counties to produce $500 million, vote for it," he said. "They did not ask the question ... if we only produce a couple hundred million, would you vote for it? To me, we need to be asking that question."

While proponents promised a $500 million bonanza for education if voters in Broward and Miami-Dade approved slots, there are no financial projections yet for what happens with the machines operating in only one county. Although some have predicted it would bring in half the promised amount, Broward has four pari-mutuel venues compared to Miami-Dade's three, and it is expected that Broward will lure bettors from its southern neighbor.

Mark Hollis of the Tallahassee Bureau contributed to this report.
Linda Kleindienst can be reached at lkleindienst@sun-sentinel.com or 850-224-6214.